Advice on transferring ownership of my father’s house to me

[Matt Ferch]

Hello, my Dad is interested in understanding and identifying the best way for him to leave his house to me, while minimizing taxes.

Generally, what are some the ways this could be handled and the relevant considerations to be aware of.

[Ashish Acharya]

Originally posted by @Matt Ferch:

Hello, my Dad is interested in understanding and identifying the best way for him to leave his house to me, while minimizing taxes.

Generally, what are some the ways this could be handled and the relevant considerations to be aware of.

 Why does he want to transfer the house now. 

Depending on the appreciation, you should inherit the asset rather than transfer before him passing away. 

Inheritance will generally wipe out all the gain as you will get the step up basis for the tax purpose. So, if you sell the property the very next day after inheritance, there will be zero tax. 

If he transfers/gifts  the property before death, you will get his old basis in the house. Thus, you will pay massive tax if appreciation is high.